COMMISSION ON AUDIT CIRCULAR NO.

81-154 March 11, 1981

TO : All Auditors, National, Local and Corporate; All Accountable Officers of the
Government and Others Concerned.

SUBJECT : Early Completion of the Audit of the accounts of Retiring Accountable Officers.

1. Rationale:

It has come to the attention of the Commission on Audit that numerous retired
accountable officers of the government, after having spent the best years of their lives in the
government service, could not enjoy their retirement benefits on account of their failure to
secure clearance from money and property accountabilities. In many instances, the reason is
failure of the Resident Auditor to complete the audit of the money and property accounts of the
retired accountable officers.

Most of these accountable officers are in the twilight of their years and the delay in the
enjoyment of their retirement benefits is actually a deprivation of their right to the early
enjoyment of their gratuities. Retirees are without job alternatives because of age. For the
reason, they deserve the compassionate attention of the entire officialdom of the Government.

2. Early Completion of the Audit of Accounts of Retiring

Accountable Officers: Officials and employees of the Commission on Audit are hereby
directed to give priority to the audit of accounts of those accountable officers. They are directed
to complete the audit of the money and property accountabilities of the retiring accountable
officers within six (6) months from the date of the submission of their complete accounts to the
Auditor.

The Resident Auditors shall concentrate on the completion of the audit of the accounts of
said accountable officers. As the personnel situation in the auditing unit would allow, auditing
personnel shall be assigned to this audit activity, exclusively, if possible, in order to complete
said audit within the time prescribed above.

3. Notice of Intended Retirement Date:

Retiring accountable officers shall notify the Resident Auditor of their intended date of
retirement at least six (6) months in advance. Upon receipt of the notice, the Resident Auditor
shall forthwith assign such personnel as maybe necessary to attain the objectives of this
issuance.

The Resident Auditor shall give like attention to accountable officials who suddenly pass
away.
4. Notice to COA Central Office of Auditor's Failure to Comply with this Issuance:

Accountable officers involved are hereby requested to inform the Commission on Audit
of the failure of any COA official to attend to the early audit and settlement of their accounts.
Completion of audit as prescribed in Section 2 hereof means the issuance of the final
certification of settlement to the retiring accountable officers. The issuance of the final certificate
of settlement will enable him to wipe off all balances due from him and thus secure clearance
from money and property accountability.

5. Partial Payments of Gratuities in Case of Physical Impossibility to Complete Audit:

In case of failure of the Auditor or physical impossibility to complete the audit within the
prescribed period, the retiring official maybe allowed to collect 50% of the proceeds of his
retirement gratuity and other benefits due upon posting of a bond equivalent thereto. Such
bond shall be answerable for any disallowances in his accounts and shall be released only upon
final liquidation of whatever balances maybe due from him.

6. Lifting of Technical Suspensions:

In the audit of a retired or deceased accountable officer's accounts, technical suspensions

shall be waived but only upon a clear showing that no loss had been suffered by the
Government. Examples:

a. Lack of signature of the approving official on the voucher when at the time of the audit
the approving officer is already dead;

b. Requiring the signature of the payee on the receipt portion of the voucher where the
payee could no longer be located and there is other evidence showing that payee
actually received the money, say, official receipt of the payee; and

c. Failure to take up in the property accounts some equipment if upon actual physical
verification the equipment exists.

7. Meaning of "Complete Accounts":

Complete accounts means submission of all vouchers, journals, ledgers, trial balances,
property inventory - all cash and property accounts - to the Auditor for audit.

8. Penal Clause:

Failure of any COA official or employee to comply with the provisions of this Circular
shall constitute sufficient cause for appropriate disciplinary action.
9. Effectivity

This Circular shall be effective immediately.

(SGD) SILVESTRE D. SARMIENTO, Commissioner

(SGD) FRANCISCO S. TANTUICO, JR., Chairman